Market Falling into Consistent Pattern

According to Altos’ market action index we have multiple areas that show stability several years in a row. The # 30 is a representation of a baseline for equal supply and demand, based on the absorption rate of inventory. For purposes of this post we are using Pacific Palisades as an example. Most of the areas we cover on this blog are trending in the same manner.

Although this graph shows there is quite a bit more inventory than there are buyers, it also clearly shows (look at the darker line for the 90 day rolling average) that we have had very consistent activity for over 3 years! On the graph you will see where the MAI was in January, 2008. Take a line and draw it straight across to today’s MAI. The inventory has been stable for about three years. It may appear be a buyer’s market, but the inventory that is there, is steadily and consistently absorbed.